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The Regus Group, the world’s largest provider of fully furnished, move-in ready offices with 1,000 locations in 78 countries, recently opened its latest Kansas City area  business center in Zona Rosa’s mixed-use development. Members of the local community, chamber of commerce and economic development leaders joined Regus team members in a festive groundbreaking where guests toured the new center that features 55 state-of-the-art offices and a boardroom.  Above in the front row are Mark Spurgeon, the Northland Regional Chamber of Commerce chair, Jeff Doughman, Regus Regional Vice President, Danielle Torneden, Regus Center Manager, Spencer Jones, Regus Area Sales Director, Susan Conley, Regus Area Sales Manager, and Tara Dyer, Regus Area Sales Manager.

Mark Spurgeon with Shani Porter and Jesse Shroyer, both with the Platte County Economic Development Council.

Brenda Noorbakhsh, administrative assistant for Zona Rosa, Karla Martinez, vice president of the Northland Regional Chamber of Commerce , and Rosemary Salerno, general manager of Zona Rosa.

Regus takes care of all of a company’s office needs, from receptionist and administrative support to providing professional grade printers, copiers, furnishings , telcoms and  IT services. The new Regus Zona Rosa business center offers a very cost-effective and flexible way of gaining immediate access to office space, typically saving a business up to 60 percent over traditional leases.  “We’re increasingly locating our centers in mixed-use environments like Zona Rosa to provide our clients with flexible options that will allow them to work closer to where they live,” Doughman said.  “  For more information on Regus’ new Zona Rosa center contact Susan Conley at susan.conley@regus.com or  913-636-8644  or go to www.regus.com

Reception shows off Crown Center properties

Greg Russell of Crown Center Redevelopment was on hand to answer questions about space available at two 2 of KC’s premier properties: 2405 Grand and 2600 Grand.  The leasing team of Mike Mayer, Stephanie Baldwin and Jeff Winters revealed a rare opportunity to accommodate up to a 53,000 square foot tenant on contiguous floors at 2405 Grand, in addition to other options. Brokers were able to tour different floors and learn more about the amenities and benefits of bringing tenants to Crown Center. Above, Mike Mayer, Thomas Houts, Stephanie Baldwin and Jeff Winters of Cassidy Turley.

Chuck Ziegler, a mortgage loan officer with Pulaski Bank in Johnson County, has a memorable sales pitch: He wants to be “your mortgage consultant for life,” as he puts it. And with some clients, that’s certainly the case. He’s been doing home loans for 39 years. “I have always enjoyed being part of helping people finance their home purchase. It is a fun and exciting time for them, and I found out early in my career I could contribute a lot to my customers by giving them information, answers to their questions and the best loan options available.” In that vein, Ziegler recently answered some questions from MetroWire about the lending business in residential real estate these days:

 The financial crisis had a profound impact on residential real estate deals. What impacts are you still seeing?

With the sub-prime meltdown and near collapse of the financial industry all aspects of home lending have changed. Fannie Mae and Freddie Mac have tightened their guidelines over and over in the last 24 months and are tightening still. Credit Bureaus have changed their formulas for FICO scoring. Missing a monthly minimum payment on a department store account or bank credit card of $20 could cause a loss of 80 or 100 points from a FICO. Two years ago a 680 FICO was rewarded with the very best rate on a conventional loan, and now that takes a 740. In fact, a 680 score has a 1.50% fee of the loan amount by FNMA for a 30-year fixed loan with a 20% down payment. There are plenty of funds available for home loans if buyers meet the “cookie cutter” guidelines so the loan can be delivered to Fannie or Freddie. If the buyers don’t fit into that niche, then many are turning to an FHA-insured loan, which is less restrictive. FHA has made major changes tightening their guidelines but they are nowhere near as restrictive as the conventional loan.   

 What kind of buyers are you seeing so far this year?

My customers are 60% first-time buyers so far this year, with the rest equally split between people moving up to their 2^nd home and people who have owned multiple homes and have reason to buy again at this time. The primary price range is $150,000 to $250,000, and the tax credit is driving most first-time buyers. 

 What are buyers most concerned about when they go through the lending process?

Today, buyers have basic questions like “will we be approved?” or “what amount we can qualify for?” or “at what price we should purchase to make the payment fit our budget?” Up until two years ago I would get one primary question when a buyer called, and that was: “what is your interest rate?” The system was broken, and everyone came to believe there was no limit on the price of home they could buy. If one lender would not finance it, others would. Now I see people being responsible and setting their own limits rather than buying at the highest price they could qualify for.

 What are some common mistakes you see real estate agents make in bringing their deals to lenders?

Two things occur that cause difficulty. One, the buyer doesn’t get loan approval before signing a contract on a house. I occasionally get a call from a Realtor whose client says, “Don’t worry about my financing as my credit is perfect and I can get a loan, so let’s go look at homes.” They go look at homes, write a contract and then call to get an approval letter after the fact. This will delay the contract being submitted, and sometimes the client has some issues they didn’t know about and can not get the needed approval. The second difficult issue for Realtors is quoting an interest rate to a client. Because interest rates can vary greatly based on credit score or loan program, the quoted rate may set up unrealistic expectations. That can lead to disappointment or, again at the worst, a client deciding not to go forward with their home purchase. My recommendation to Realtors is to always introduce their clients to a home lending partner for loan approval at an early stage. In response to the question “what are interest rates?” Realtors can say that rates are at historic lows and their lender will be able to give them specific quotes for their home financing.

Good Stats: Zip Code 66217 outperforms the rest in 2009

According to the Kansas City Regional Association of Realtors, the best-performing area in Johnson County last year wasn’t Mission Hills or Old Leawood or somewhere out south:  the best-performing housing appreciation was ZIP code 66217, encompassing Lake Quivera and the I-435 corridor. The average resale prices of existing homes in that ZIP code in 2009 was $359,800, up 12.7% from 2008.

Tuesday tour brings out agents to network

Agents flocked to Susan Fate’s Reece & Nichols listing in Mission Farms this week for a bite and a chance to tour the $1 million-plus home that’s exquisitely decorated and positioned next to a small lake and mature trees. Above, Fate (center) with Jill Elder and Katie Rhoades of Prudential.

Chris Collins and Kirk Blinzler with Keller Williams stopped by Fate’s listing, too, but not before stopping in Sara Armer’s listing near 105th and Mission Road. Armer (below with Mary Sharp of Reece & Nichols) served up the ever-popular Planet Sub for guests.

Also on tour day, Gwen Caranchini stopped in to chat with Don Payne (below) and his wife Mary Payne at their listing at 3021 W. 81st Terrace. The Paynes were serving up a Mexican buffet to lure agents to the ranch that boasts a large backyard and updated kitchen.

Mary Payne and Sherri Trotter with Capital Federal.

David Hinchman is First Vice President now acting Managing Director of the Kansas City CB Richard Ellis office. He has been in the real estate brokerage and development business since 1976, and at CB Richard Ellis since 1978. In the past 5 years, he has represented developers, Fortune 500 companies and others in real estate transactions in excess of $1 billion. In addition, he is a member of the company’s Special Properties Group which oversees the acquisition and disposition needs of large industrial facilities in ex-urban areas in both Missouri and Kansas.

What is the industrial leasing climate like right now and how is that affecting development?

At this time, leasing in the Kansas City industrial market is still at a moderate velocity with indications of increasing demand. Even though there are limited vacancies, because of the concerns nationally about over building, developers in Kansas City are still cautious about adding more new projects until stronger leasing demand is solidified. Having been in the commercial and primarily industrial real estate market for the past 34 years, I have had the opportunity to move through many business cycles including the first challenging one in the early years of my career. As I was just getting settled in the business, interest rates shot up to 22% and Kansas City’s industrial vacancies hit the highest level I have seen throughout my career. I admit that the present economic cycle we are experiencing has been one of the most unique and challenging one for tenants, brokers, developers, and investor owners of real estate.  Our clients recognize that the Kansas City market is a more stable one than most other areas of the country. At the same time, we are part of a national and global economy that has an impact on our industrial market. We feel that Kansas City is on the verge of becoming a significant player in the national big box distribution center market. A momentum was building from the period of 2002 to 2007 when economic turmoil on Wall Street put a halt to industrial and other commercial real estate development. The developer clients have been hit as hard as any components of our market since their growth was typically fueled by continual development. Developers in this market are cautiously optimistic that we are seeing a turn in both the economy and demand for industrial space in the coming future which coupled with Kansas City’s low vacancies will generate new development opportunities in this marketplace.

In general, are your clients most likely to expand, downsize, or renew in this current climate?

The majority of tenants are still continuing to renew for the short term. The balance falls into two camps on either side of the issue. Some are taking the positive economic signals as an opportunity to begin expansion of their market share and expanding for more efficient operations in the future. The balance of tenants, due to cutbacks from their customer demand, have reduced their overall footprint in the Kansas City market, but nowhere to the degree they have in other industrial markets around the country.

Tell us about some of your interesting deals.

One of the projects that has been an exciting one for us to be involved in is a new industry for the United States that appears to be focused in Kansas City. A year and a half ago I made contact with Bryan Hansel, CEO of Smith Electric Vehicles – US (SEV-US). Bryan is bringing to the United States a tried and true product that was developed by his soon to be former parent company; he is acquiring the parent company. The vehicle is an all battery, zero emission depot based delivery truck. When I was introduced to Bryan by one of my colleagues, we immediately began the relationship of searching for the initial headquarters and plant operation facilities for this exciting and emerging industry. We found flexible space at KCI for both components. As a result of the trusted advisor relationship we developed, my team and I and CB Richard Ellis have been engaged on an exclusive national basis to represent SEV-US in the development of their to be built international headquarters/research and development and regional assembly operation. In addition, we brought in one of our other national clients who we represent for their 45+ offices around the country, TranSystems, who completed a four month LeanManufacturing process review for SEV-US. As a result of that review, recommendations were made and accepted to create up to 20 decentralized final assembly/sales/service facilities in major metropolitan markets throughout the United States. I will be heading up all of the real estate search and other processes for my good friend and client, Bryan Hansel, CEO of Smith Electric Vehicles – US.

 How does KC compare to other industrial markets?

As I mentioned before, Kansas City is one of the more stable industrial markets throughout the United States. Most professionals in our business consider that there are either three or five core industrial markets in the United States. Southern California, Chicago, and Northern New Jersey, with some considering in addition the Dallas/Ft. Worth metroplex and Atlanta. Kansas City is a clear, solid, second tier market that has shown stability throughout economic cycles and is growing in its reputation as not only a national or regional distribution center for logistics based companies, but also a stable market for institutional and entrepreneurial owners of industrial real estate to acquire properties. As a result of that growing interest in Kansas City as an industrial investment market, our team has facilitated close to $600 million of industrial investment sales over the past seven years. The Kansas City market has one of the lowest vacancy levels in the United States at approximately 7%. Below, a multi-tenant deal by Hinchman and his team in Lenexa.

 What’s your niche?

My niche is to provide a range of services to selected clients. I operate as the senior member of our team advising, consulting and working with all of our team members to bring our talents and expertise to our clients. Additionally, my background and experience in industrial development has allowed me to assist in the development of over 15 million SF of industrial facilities for users and developers alike. Additionally, I have developed relationships as a trusted advisor to corporations such as Smith Electric Vehicles – US, TranSystems and Insurance Auto Auction as either their sole or primary real estate provider.

Tell us about your interesting background

I was born and raised in Kansas City. I left here for college and did not return until seven years later, having lived in California, Europe and traveled the world. I spent those years studying, working in the film industry, and having a small organic farm in the wine country of Northern California. When I came back to Kansas City, it was with a unique career and training as a teacher of the Transcendental Meditation Program. I taught the Transcendental Meditation Program directly or indirectly to over 5,000 people predominantly in the Kansas City area including programs that were sourced by local businesses to bring this stress reduction and creativity increasing technique to their sales, executive, or work force. Additionally, I have led over 13 wilderness trips under the auspices of the Wilderness Guides Council. These programs are designed to take an individual into a wilderness environment to learn more about themselves emotionally, intellectually and spiritually, at the same time to address transitionary times in their lives such as the evolution of a boy into his manhood or an individual ending a long time successful career while moving into the new phase of their retirement life.  These wilderness trips are typically done in Big Bend National Park in Southwest Texas where an individual challenges Nature and themselves to understand and then commit or recommit to their deeper purposes in their lives.

We heard you’re quite a cyclist

I am an avid bicycler, having one time and hopefully again, participated in RAGBRAI the 500 to 600 mile week long bike ride across Iowa. I have also studied a Chinese training program called Qi Gong for the past 11 years through a teacher based in the Austin, Texas area. My son is a fourth year financial analyst in the private equity markets at Goldman Sachs and will be moving this fall to work for Oak Tree, a Los Angeles based hedge fund. I have an 18 year old Chinese born daughter graduating from Bishop Miege High School this spring who will be attending her freshman year at the University of California San Diego.

Nikki Tygard, vice president with Pulaski Bank Home Lending, hosted a barbecue this week at Pat Hersma’s Re/Max First listing in the Meyer Circle neighborhood. Agents flocked to the tour, including (above) Jeff Sokoloff with Coldwell Banker and Wallace Kilbourne with Reece & Nichols, who filled up on brisket and beans.

Renee McMahon with Prudential, Janet Stone with Re/Max First , and Franny Knight with Keller Williams liked the European, contemporary feel of the kitchen in this sprawling, 3,000-square-foot ranch at 1232 W. 65th.
 

Tour goers Jan Peterson with Reece & Nichols and Judy Zimmerman with Re/Max First stopped by for a peek.

Pat Hersma (left) with Nikki Tygard in front of the home just west of Ward Parkway.

New stats show big surprise in Kansas City, Missouri 

What a surprise. The best-performing area of KCMO was not the Plaza or Brookside or somewhere in the Northland. It was that little sliver east of Raytown. The best-performing housing appreciation in the city of Kansas City, Missouri, last year: ZIP code 64139, that part of KC proper that’s east of Raytown. The average resale prices of existing homes in that ZIP code was $243,000 in 2009, up 32.5% from 2008, according to the Kansas City Regional Association of Realtors.

 Leabrooke offers several styles of homes for all ages

You might say Leawood’s Leabrooke residential development is a “coming of age” subdivision. That’s because it’s a little unusual in south Johnson County, a subdivision that caters to all ages of homebuyers, from the single person who’s a first-time buyer, through mover-upper families all the way to empty nester couples. “We are attractive to people making lifestyle changes,” says David McIntyre, the developer of the four-year-old subdivision at 145^th Street and Kenneth Road just west of the state line in south Leawood. Leabrooke is several types of residential living rolled into one community. The Town Manor section is attached villas, 3 units per building, all with first-floor master bedrooms and 2-car garages. They range from $229,000 to $319,000. The Preserve has free-standing single-family villas with 3-car garages, finished rec rooms and developer-provided lawn service and snow removals. They range from $350,000 to $578,000. Then at the higher end, expansive single-family homes in the Highlands and Park Estates sections can exceed 5,000 square feet and range in price up to over $800,000. Since opening in 2006, 58 homes, 21 villas and 15 manors have sold, and several more are on the  Spring Parade of Homes. There’s a lighted entryway fountain, a stocked fishing lake and a clubhouse with pool and fitness center, below. 

 CCIM talks growth

CCIM & Missouri Growth Association presented “Government Affairs and its Effect on Kansas City Real Estate” recently at its monthly breakfast meeting at Mission Hills Country Club. Above, event speakers Brian Grave, lobbyist for Missouri Growth Association, with Sonnenschein Nath & Rosenthal, Jeff Kaczmarek, CEO of the Economic Development Corp., and Luke Bell, Lobbyist for Kansas Association of REALTORS.

David Hodes with KC Business Magazine and Aaron Mesmer with Block Real Estate Services. They were pleased that the speakers were “cautiously optimistic” about the current economic development climate, and that “Kansas City’s economy is holding up very well.” The speakers told the group that” this is the time to position yourself with political leaders, that this is the time to position yourself for success.” And yes, there’s lots of federal loan money out there, but most of it has “strings attached.”

Jason Hobick and Kory Hochler with the U.S. General Services Administration

Doug Hedrick with Grubb & Ellis and Chuck Connely, president of C.C. Connely & Associates LLC, builder financial services group.

Shirley Harpool with Varnum/Armstrong/Deeter, and Diana Ennis, Manager, Stewart Title Company, and CREW chapter president

Kerr readies for Freight House District Auction

On May 6, numerous properties (see the ones above and below) in the Freight House District and in the 3700 block of Main Street will be auctioned off to the highest bidders. But time is running out — sealed bids are due April 29, said Gib Kerr, who is handling the sale along with David E. Gilmore and Don Erler of Sperry Van Ness. 

The estate of the late Kansas City developer Tom Levitt will be auctioned off, and it includes 8 historic buildings and 2 parking lots in the Freight House District, and 3 buildings and 2 parking lots in the 3700 block of Main St. The Freight House buildings are eligible for historic tax credits up to 45 percent or qualified redevelopment costs. This area has been reborn over the last decade as a cultural, commercial and residential center of Kansas City. Featuring new streetscapes, outstanding restaurants, hundreds of loft apartments and a vibrant arts scene, its has become a sought-after urban environment. The Main Street buildings up for auction also include historic tax credits and other incentives. This area serves as a vital connection between downtown and the Country Club Plaza. It is experiencing an economic renaissance as many new businesses and residents are relocating to the area. For more information, call Kerr at 816-303-2117 or visit www.svnauctions.com.

 Deb Churchill, Property Manager of the City Market, wins top award

 The City of Kansas City, and Copaken, White & Blitt, LLC, the property management company of the City Market, have announced that Deb Churchill, Property Manager of the City Market, was awarded Produce Market Manager of the Year by the National Association of Produce Market Managers during the annual conference in Dallas. She won the award for her dedication to the City Market and her significant contributions to the industry on a national level. She manages day-to-day operations for an 11- acre, multi-use property with approximately 125,000 square feet of leasable space. Churchill manages a $1.3 million dollar annual budget and has coordinated and managed approximately $3.9 million in capital improvements. Property management of the City Market goes beyond the real estate aspect, including oversight of the largest farmers’ market in Missouri as well as festivals, events and concerts.

R. Lee Harris is the President and CEO of Cohen-Esrey Real Estate Services, LLC, a  national leader in everything from property management to tax credit investments; from construction management to affordable housing development. He joined Cohen-Esrey right after graduating in 1975 from Kansas State University, where he earned a bachelor’s of science degree in economics. He is a Certified Property Manager through the Institute of Real Estate Management and received the CRE designation from the Counselors of Real Estate. Harris has been personally involved in the management of more than 50,000 multi-family units and 25 million square feet of office building, industrial and shopping center space throughout the country. He has worked with real estate investment trusts, insurance companies, pension funds, banks, savings and loans, developers, government agencies, and corporate and individual investors.

What is your focus at Cohen-Esrey these days?

Our theme is re-invention. We’ve worked through traditional times and not-so traditional times, and the not-so traditional times are much more exciting. If you don’t re-invent, you’re missing an opportunity out there. We added an affordable housing unit in the mid-‘90s and we added a construction company and a tax credit syndication unit, while other ventures we either sold or shut down over the years. Things just keep on changing. And expanding. We have multiple companies now and at least 20 different revenue streams that we have identified over the years.

So what is working for you right now?

Affordable housing development is a big deal for us right now. We go to small towns, find historic buildings, renovate and restore them and then rent them to senior citizens. We use low-income housing, state and federal historic tax credits and we’re able to do these projects with no long-term foreclosable debt. We have one under construction in Hiawatha, Kan., an old grocery store right on the courthouse square. It’s a $2.3 million project that will have very affordable rents for seniors at about $400 a month. Then in Yates Center, Kan. (see below), we’re doing the same thing with the old Woodson Hotel — Jesse James even stayed there. Again, it’s on the courthouse square of the town. It’s so much fun to go into these small towns and create something that’s affordable for people. And it’s one type of business for us that’s booming despite all the gloom and doom. We use our own construction company, our development company, our tax credit syndication unit and our apartment management team, to make this work.

What other segment of your company is keeping busy?

Our CE Special Assets Group LLC helps banks that have distressed real estate. We help manage and dispose of those assets. In the process we developed a new software and we’re re-tooling it for banks all across the country. So that’s just an example of how we’re looking for whatever opportunities are out there. We also have a contract with the Kansas City EDC to buy houses that have been foreclosed by banks and renovate and sell them. The funds are provided through the federal Neighborhood Stabilization Program, and after the houses are sold, the proceeds are recycled back into the program and we do it all over again. This is truly exciting because we’re going into urban neighborhoods, fixing up houses, and in some instances involving the Green Impact Zone, the infrastructure may also be improved. So now all of a sudden you’ve truly revitalized a neighborhood.

Tell us about your family and the charity you created.

My wife Barbara and I have two grown daughters and one grandson. We like to travel and I’m a big reader. We’re really dedicated to K-State, and I’ve been very active in the KSU Foundation. In 1999, we started the Tomorrow’s Teacher Scholarship Program because we have a passion for education. It attracts and rewards the “best and the brightest” young Kansans who wish to pursue a career in teaching and desire to attend Kansas State University.

We heard you are an author, is this true?

In 1979 Harris became a member of the Institute of Real Estate Management’s Academy of Authors by publishing numerous articles regarding the commercial real estate industry. He has written a wide range of articles for The Journal of Property Management, Affordable Housing Finance Magazine, Apartment Finance Today, Scotsmen Guide, Real Estate Issues, CRE Issues, and a number of other publications. He was the 1986 president of the Kansas City IREM Chapter and was the Chapter’s 1988 recipient of the Certified Property Manager of the Year award.

Hunter Harris with LANE4 gives update on project near KU Med Center

Hunter Harris, Director of Development with LANE4 Property Group, Inc., was the guest speaker at a recent CREW luncheon. Harris gave a presentation on LANE4’s latest development, 39Rainbow. 39Rainbow is a 140,000 square foot mixed-use project located adjacent to Wyandotte County’s largest employer, the University of Kansas Medical Center. Located at the southwest corner of West 39th Avenue and Rainbow Boulevard in Kansas City, Kansas, the project features urban-style design with retail, residential and an 89-room hotel and will cater to the underserved needs of the Medical Center’s employees, students and patients.

Bo Harris, owner of Harris Construction and father of the guest speaker, introduces Hunter to the lunch guests.

Bo and Hunter join Diana Ennis with Stewart Title (2010 KC CREW President), and Joy Hays with Polsinelli Shughart P.C. (Chair of the KC CREW Programs Committee).

Chris Hafner, AIA – Principal with Davidson-Brown Architects (Program Sponsor), and Tracie Corcoran – Relationship Manager with Wells Fargo Bank, N.A., won the door prizes. Chris won a pair of diamond earrings and Tracie won a sleeve of MoJo golf balls. We’re pretty sure they arranged a trade after the event.

Downtowners gather for fun at Boulevard Brewery

Members and guests of The Downtowners, an informal association of Kansas Citians who live, work, play and promote development in downtown Kansas City, held a happy hour recently at Boulevard Brewery. The party was on the top floor on a warm and sunny Friday, and guests streamed out to the deck for a great view of the city. Above, Kathy Schikevitz with KS Consulting and Roger Summers with Key Construction welcomed guests to the event.

Mark Martin with FormWorks and Babette Macy with Kissick Construction enjoyed samples in the Boulevard tasting room.

Alan Waterman with 909 Walnut, Pat Murfey with Grindstone Industrial Properties, Hali Morgan with 909 Walnut and Lance Strait with DFS Commercial socialized at the networking event.

Joe Close with Country Club Bank and John Arnold (right) with ReMax mingled at the party.

George Birt with Consolidated Development Partners and Libby Rivers enjoyed a drink and some hors d’oeuvres.

Quality Hill going “condo”

Several of Downtown Kansas City’s historic apartment buildings are being converted into condominiums in the Quality Hill neighborhood (above).  Sales velocity has been high since the condominium units hit the market last year, and recent sales have been strong during the last weeks of the federal government’s home buyer tax-credit program. The buildings – La Homa, the Case and Nelle Peters – have 17 units left out of 73. “The last couple of months have been crazy,” says Christina Boveri (below) of the Boveri Realty Group (above), which is now marketing the buildings. “Everyone’s trying to beat the deadline of the (first-time buyer) tax credits,” which is the end of April for deals under contract.

The three buildings are part of the portfolio of Kansas City-based CRES Management LLC, which in early 2008 purchased 21 buildings in Quality Hill from the neighborhood’s original developer, McCormack Baron Salazar. Since then, CRES has been updating several of the buildings with, among other things, new hardwood floors, walk-in showers and stainless steel kitchen appliances.  (see  below).

The exterior renovations include new roofs, siding and paint. The La Homa, Case and Nelle Peters condos are all priced to attract the first-time buyer. The La Homa, a 3-story brick building on 11^th Street, and the Case, a row of 2-story townhomes on 10^th Street, both offer 2-bedroom units starting in the $220,000s, and they are approved for FHA financing.  Nelle Peters, across Washington Street from the Quality Hill YMCA, offers 1-bedroom units as low as $115,000 as is, or $145,000 with renovations.  All three buildings also allow access to the neighborhood’s swimming pool, and their homeowners association provides snow removal and security patrols. Recent buyers have predominantly been younger, single professionals who work downtown. What attracts them, according to Boveri, is Quality Hill’s charm and location. There aren’t many other opportunities to own a newly redecorated condominium inside the downtown loop, within a few blocks of the Power & Light District. “The neighborhood is probably the biggest draw,” Boveri says. “The streets are tree-lined. It’s very walkable, and it’s historic.”

9525 Manor 1 :   Suzanne Roberts and Linda Jackson (Linda Jackson is the agent)

9525 Manor 2:    Donna Toma, Cathy Verschelden, Linda Jackson

9525 Manor 3:    Donna Martin, Genie Ullom

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Good Stats! Through the first two months of 2010, residential building permits in metro KC are up 32% over the same period in 2009. Here are the top gainers among area cities so far this year:  Olathe: +20 units, +77%;  Overland Park: +19 units, +238%; Lee’s Summit: +19 units, +475%; Independence: +11 units, +1000%.; Lenexa: +6 units, +600%; Parkville: +6 units, +1000%.

Greg Duvall is a Senior Vice President and Senior Director in NorthMarq Capital’s (NorthMarq) Kansas City Regional office.  NorthMarq is a privately owned national commercial mortgage banking business headquartered in Minneapolis, providing many services for commercial real estate owners, occupiers, and investors, including brokerage, property management and industry-leading capital market solutions.

Duvall, a Kansas City area native and a graduate of Shawnee Mission South High School,  attended KU where he earned his bachelor’s degree in business, and then earned his MBA at Memphis University.  After a stint with Procter and Gamble and then with the Travelers Insurance Commercial Real Estate Department, Duvall joined NorthMarq, where he’s been for the past 23 years.

What is your main focus at NorthMarq?

As a Senior Vice President – loan production,  I am responsible for generating (mostly) permanent loans.  Typical lenders are life companies and agencies (Freddie/Fannie) or HUD.  We do all types of commercial income property – office, retail, apartments and industrial.  We’ve done more apartment business over the past 5 years than other property types.  NorthMarq services most of the loans we originate – I also am responsible for making sure the servicing of the loans goes smoothly for my clients.

What’s your opinion on the state of the economy and how it relates  to your business?

I think we have turned the corner although I think the recovery in our industry will be slow, particularly since the overall economy will be gradual and RE is generally a lagging indicator.

What are your biggest challenges right now?

The biggest challenges right now - loan underwriting is much tighter than it was two to three years ago. Therefore, it is often very difficult to achieve the desired/requested loan amounts, and there are just very few sales transactions.  We do both refinances and acquisition financing, therefore we still have a fairly steady stream of refinance business, but the acquisition financing is just a fraction of what it was a few years ago.

How will you meet those challenges?

We look to expand our client base and to provide additional services to our existing clients (equity, bridge financing, etc.).

What deals are you involved in?

I am currently working on a number of multifamily deals and a few commercial (retail) loan requests.  Recently I closed a $7.24 million acquisition loan secured by a 219 unit apartment property located in Atlanta.  A number of my clients are actively pursuing acquisitions, but have not yet pulled the trigger. Below, Duvall also recently closed a $15.36 million acquisition loan secured by the Broadstone Colonnade Apartments which are located in San Antonio.  The borrower in connection with the Broadstone Colonnade loan is based here in Kansas City  -  and NorthMarq has done business with them for over 20 years.

Tell us a bit more about NorthMarq and how it’s fared recently.

We have approximately 30 offices throughout the country and our list of lenders includes over 50 life insurance companies along with Freddie Mac, Fannie Mae and HUD.   We service approximately $40 billion of commercial mortgage loans.  NorthMarq is very strong financially which has enabled us to expand during the current RE downturn.  NorthMarq has been a great place to work – which is why I have chosen to stay here since 1987.

Tell us about your family and interests

My wife and I have enjoyed raising our 3 kids – Michael, John and Rachel.  Michael is out of college, John is a senior in college and Rachel is a junior at Shawnee Mission East. Our two boys went back East to college where they both played football – so we enjoyed following that as well as other activities they were involved in as younger kids.  Our daughter is a very committed ballet student – she will be in NY attending the School of American Ballet for a 6 week program again this summer – and we enjoy watching her perform and advance in her chosen field of interest.  As the kids grow more independent, my wife Elaine and I are both trying to pick up golf, and we both enjoy travel.

CCIM breakfast speakers explore financing issues in today’s economy

Bess Kessinger with Q10 | Triad Capital Advisors, and David Kenner, Levy and Craig, PC (above with Bill Fair) along with John Parker of  Q10 | Triad, (below with Steve Coon of Rapid-Built Properties, LLC)  gave an update on the real estate debt markets – how we got here and what happens next – at a recent CCIM breakfast meeting at Mission Hills Country Club.

Kessinger’s talk, titled “Real Estate Capital Markets, Why Can’t I Borrow More Money?” gave some sobering statistics and information: the credit meltdown, in a nutshell, happened because we had easy access to capital, inflated property values, and appreciation was cap rate driven and had little to do with underlying real estate fundamentals. CRE annual transaction volume dropped from $366.4 billion in 2007 to $18 billion in 2009.

But Robert Pitkin, Levy and Craig, and Robert Gude (above) heard some

good news, too,: financing is available for strong borrowers,

secured by quality real estate in quality markets,

and the economy is showing positive signs of recovery.

New capital sources include private equity funds,

sovereign funds, investment banks, REITs and others.

Jack Hanrahan with First American Title Insurance Company, Linda Peroff with Cohen-Esrey, and Raymond Sisson with Coldwell Banker Commercial spent some time networking at their table after the breakfast.

Ping Pong winner declared at Harbinger happy hour tournament

Colleagues gathered at Harbinger Property Group

on a recent afternoon for food, beer, and yes, the

ping pong championships. Above, Brent Peterson of Harbinger won

the tournament and Patrick Meraz, also with Harbinger, came in

a close second.
 

Peterson and Zac Haith with Zimmer (below) show off their skills.

Below, Matthew Severns, Kessinger-Hunter, Patrick Meraz 

and Mark Laverentz, both with Harbinger, gather around 

the table.

Ken Block honored with 2009 Allen J. Block Realtor of the Year Award
The Kansas City Regional Association of REALTORS  announced award
winners of their 2009 best in Commercial Real Estate.
Ken Block (below) won the highest honor, the 2009 Allen J. Block
Realtor of the Year Award. Six other Block Real Estate brokers
also won awards for their success in Commercial Real Estate last year.